The Karnataka transport department will crack down on app-based taxi-hailing aggregators Ola and Uber from May 1 for their alleged failure to follow the rules notified in April.Aparajita Ray | TNN | April 28, 2016, 08:47 IST

The Karnataka transport department will crack down on app-based taxi-hailing aggregators Ola and Uber from May 1 for their alleged failure to follow the rules notified in April.

The crackdown includes seizure of vehicles and levy of heavy fine. "Aggregators must obtain licences under the Karnataka On-Demand Transportation Technology Aggregator Rule 2016. The rule was enforced on April 2, but the companies are yet to complete the formalities. We won't budge to multinational companies. All these days, they blamed us for not having a legal framework to govern their operation," transport commissioner Rame Gowda told TOI.

Ola and Uber applied for licence last week. They are yet to pay a Rs 1-lakh security deposit and furnish details of vehicles operating for them. Each licence allows the aggregator to furnish details of 100 vehicles. The transport department has been receiving complaints on WhatsApp and Twitter about overcharging by the aggregators in the name of surge pricing. "A commuter paid Rs the name of surge pricing.

"A commuter paid Rs 3,000 for a ride from Hebbal to Majestic; there are several instances of Rs 981 being charged in place of Rs 90 for peak-hour trips. These companies started their services claiming to be cheaper than autorickshaws, but are fooling commuters through surge pricing," he said.

Karnataka is the first Indian state to frame and implement a law for cab aggregators and set a cap on surge pricing. The rule said the maximum fare cannot exceed Rs 19.50 per km for AC cabs, including taxes. This is the fare fixed by the government in Karnataka for city taxis. For non-AC cabs, the maximum fare is fixed at Rs 14.50 per km. The rule allows companies to charge fares lower than the fixed tariff.

The rule says companies must publicize the rates for various types of services on their app as well as website which the companies have not done. The rule prescribes vehicle-tracking system integrated with police and transport departments and tamper-proof panic buttons, among other things.

Meanwhile, enforcement drives are continuing and over 500 cabs have been booked by RTOs. This has left drivers fuming against the department. "Why are the officials seizing our vehicles or penalizing us with hefty fines? They should check with the companies," said Gopal R, a driver who plies his cab for both Ola and Uber. The average penalty amount ranges between Rs 100 and Rs 3,000, depending on the type of offence.